Telecommunications firm Verizon and media group Hearst agreed yesterday to jointly acquire Complex, a US-based online media company in which Hearst is already an investor.
Hearst and Verizon will each take a 50% share of Complex in a deal that will value the company at between $250m and $300m, according to the Wall Street Journal, which cited people familiar with the matter.
Founded in 2002, Complex operates a digital media site covering US pop culture aimed at millennial males, and has been profitable since 2010 according to a statement by Hearst.
Complex had raised approximately $60m in venture funding, most recently receiving $21m in funding from Hearst in September 2015. Apparel producer Iconix Brand Group had already invested $25m in 2013, while other exiting backers include S3 Ventures, Austin Ventures and Accel Partners.
Complex founder and CEO Rich Antoniello will continue to head the company, which post-acquisition will create video content that can be distributed across Verizon’s digital media properties, such as AOL.com and mobile television network Go90.
Brian Angiolet, senior-vice president of consumer product and marketing for Verizon, said: “The decision to acquire Complex is certainly a continuation of our media strategy, which is focused on disruption that is occurring in digital media and content distribution, and involves building a portfolio of the emerging digital brands of the future for the millennial and Gen-Z audience.
“When we look at Complex and how well they’ve built audiences by championing the digital convergence of cultures for well over a decade, it pairs well with our strategic vision and current shifts in content consumption.”
The deal marks the latest joint venture between Hearst and Verizon, which formed a partnership last month that will involve them teaming to launch multiplatform digital video channels focused on millennial mobile users.
The corporates each own 24.5% shares of Awesomeness TV, a multi-channel network in which entertainment studio Dreamworks is the majority shareholder, while Hearst’s portfolio companies include digital media properties Vice Media, BuzzFeed and Stylus Media.